DSEX gains 320 points in 4 days

Dhaka stocks witnessed another bullish session on Wednesday, with the turnover hitting nearly Tk 12 billion, as buoyant investors continued their buying spree - anticipating further positive momentum ahead.
The market skyrocketed at the beginning of the session, riding on the investors' optimism - resulting from a positive development from the Ministry of Finance (MoF) regarding the banks' capital market investment exposure.
The MoF finally recommended the banks to calculate the stock market investment exposure on cost price basis instead of market price. The ministry made the recommendation through a letter, sent to the Bangladesh Bank on Tuesday.
Following the news, the market experienced a steep rise, and the key index of the prime bourse rose 104 points within the first 30 minutes of trading. However, half of the early gains faded away, as some of the investors booked profit on quick-gaining stocks.
DSEX went up by 50.87 points or 0.81 per cent to settle at 6,300. DSEX added 320 points in the past four days.
The turnover rose to Tk 11.95 billion on the country's prime bourse, which was Tk 11.83 billion in the previous day.
It was the biggest single-day transaction on the DSE since May 10, when turnover totalled Tk 12.58 billion.
Market operators said the investors put fresh funds on stocks following the positive development that the banks could calculate their capital market exposure on cost price basis instead of market price.
The market was in a recovery phase after the securities regulator had imposed the 'floor price'. Besides, the news that banks could consider the cost price on exposure calculation positively impacted the investors' sentiment, said a top asset manager.
"The news encouraged the investors to put fresh funds on stocks. As a result, the sale pressure from the banks will drop to some extent in the coming months when the market rises."
Some positive economic indicators also prompted them to put fresh funds on stocks, he added.
The investors were more confident and buoyant to put fresh bets - anticipating positive momentum in the coming months, said International Leasing Securities.
The MoF - by referring to the Bank Company Act 1991 - ensured that the banks could consider the cost price of stocks while determining their exposure limit.
"Favourable regulatory actions along with the recent rise in remittance inflow, decline in import, and increase in export earning positively impacted the investors' sentiment," said EBL Securities.
Two other indices of the DSE also ended higher on the day. The DS30 index - comprising blue chips - rose 24.62 points to finish at 2,258, and the DSE Shariah Index (DSES) gained 8.16 points to close at 1,370.
The investors' activities were mainly focused on textile sector, which captured 19.4 per cent of the day's total turnover, followed by miscellaneous (12.1 per cent), and pharmaceuticals (9.1 per cent).
The major sectors posted gains with miscellaneous being the highest gainer, gaining 2.70 per cent, followed by bank with 1.60 per cent, financial institutions 1.50 per cent, cement 1.20 per cent, pharma 0.90 per cent, and power 0.20 per cent.
However, the losers took a modest lead over the gainers. Of the 382 issues traded, 162 declined, 152 advanced, and 68 remained unchanged on the DSE trading floor.
Beximco was the most-traded stock with shares worth Tk 994 million changing hands, followed by Fortune Shoes, IPDC Finance, Malek Spinning Mills, and Delta Life Insurance.
Fareast Finance and Investment was the top gainer, posting a gain of 10 per cent, while Paper Processing and Packaging was the worst loser, shedding 4.63 per cent.
The Chittagong Stock Exchange (CSE) also kept gaining with its All Shares Price Index (CASPI) rising 164 points to finish at 18,483, and the Selective Categories Index - CSCX - gaining 98 points to close at 11,073.
Of the issues traded on the CSE on the day, 150 advanced, 98 declined, and 57 remained unchanged.
The port-city bourse traded 9.50 million shares and mutual fund units with the turnover value of Tk 215 million.

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